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Return home8.2. Private financing models
Private financing models can provide flexible and scalable funding solutions for charging infrastructure, especially when public financing is unsuitable.
Private financing models
PSBs often benefit from private financing as their larger fleets ensure a steady use of charging infrastructure. Smaller or rural public sector fleets should consider sharing charging infrastructure and group bidding to boost their purchasing power.
Where the public financing models above aren’t suitable, local authorities and public bodies should explore private financing options and strategies to attract private investment.
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Some chargepoint operators (CPOs) offer charging-as-a-service options. In these cases, the provider fronts the financial investment for a fixed rate fee, often expressed as a price per kilowatt hour (p/kWh). The CPO recoups its investment over a longer period through a margin on the p/kWh pricing.
CPOs provide different prices, requirements, and focus areas for their services. Each PSB (or group of bodies) should work with CPOs to explore available investment opportunities. Larger fleets generally have lower costs due to higher expected usage. Sharing charging infrastructure can help smaller fleets improve their options.
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Although concession models and joint ventures are common in public-private partnerships, they are rarely used in depot charging infrastructure. In the current funding environment, PSBs should plan to include private financing models to support future expansion of charging infrastructure.
Partnering with a CPO through joint ventures or concession models can appeal to fleets wanting more control over pricing, operation, and infrastructure usage. These options might be cheaper than direct leasing as they offer a more balanced risk profile for the private party. However, smaller and rural PSBs may have fewer partnership options available.
